The Amazon Fire phone has not gained much traction in a crowded smartphone market with big boys like Apple and Samsung, so the company is drastically dropping the price of the phone and making it available without contract

According to Android Geeks, back in the early summer, Amazon formed an exclusive partnership to offer the new phone on AT&T only. The cost was only $99.99 with a two-year contract.

Apparently that did not work because the phone then dropped to $0.99 with a two-year contract.

It seems that the $0.99 price is not working either because now customers can choose to purchase the Amazon Fire phone without a contract and unlocked for $199.

It doesn't stop there though.

If customers buy the phone, they will get a year membership to Amazon Prime. Amazon Prime is the membership-only plan that gets consumers free two-day shipping and many other benefits such as free streaming video and cloud storage. This is a big saving because the phone alone (or without a contract), retails for $450.

Amazon Fire is by no means a poor device; it just isn't a mainstream Android or an iPhone, and customers may be fearful to switch over to it.

The phone has an almost full 3D-viewing experience, an excellent screen with Gorilla Glass, a 1080p video experience, a 13 MP camera, NFC (nearfield communications) and a customizable version of Android.

So why the reluctance from customers to buy it? That's a question for Amazon corporate to figure out. Most people are still sticking with the iPhone, Samsung or LG smartphones and seem unwilling to try something new.

With a $199 price point for a $450 phone, Amazon may get some new customers interested in its smartphone.

What do you think of the Amazon Fire? Leave a comment below and let us know.

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